ADB cites PH among most responsive economies to Middle East shock

Global financial institution Asian Development Bank(ADB) has identified the Philippines as having some of the most extensive and wide-ranging policy responses to the global economic disruption caused by the ongoing conflict in the Middle East.

In its April 2026 report, "The Impact of the Middle East Conflict on Asia and the Pacific," the , the ADB found that the Philippines implemented measures across seven out of eight response categories.

These measures include:

• fuel subsidies;

• targeted financial assistance;

• staggered oil price adjustments;

• demand management strategies;

• supply-side interventions, and

• energy diversification efforts.

The Iran war began on February 28 and the ADB had earlier estimated that the conflict would be short-lived.

In its report, the ADB noted that it earlier "envisaged that the conflict would be relatively short-lived—lasting one to two months—with only temporary disruptions to global energy markets."

The ADB said, "Prolonged disruptions to energy transport and infrastructure in the Middle East point to more persistent supply constraints than anticipated in March 2026, potentially leading to structurally higher energy prices."

On its post on Facebook on April 29, the ADB said, "The conflict in the Middle East is hitting developing Asia and the Pacific harder and longer than expected."

The ADB said its latest update "significantly downgrades the economic growth outlook and raises inflation projections as more severe and prolonged disruptions from the conflict continue to raise energy prices, tighten financial conditions, and weigh on economic activity."

According to the ADB, "Under a new reference scenario assuming persistent energy supply disruptions and only a gradual easing of market tightness, growth in developing Asia and the Pacific is projected to slow to 4.7% and inflation to rise to 5.2% in 2026."

"This compares with projections of 5.1% growth and 3.6% inflation under the early stabilization scenario in the Asian Development Outlook April 2026," it added.

PH'S UPLIFT PROGRAM

Meanwhile, a news release of the Presidential Communications Office noted that the Philippines is also one of only two countries, alongside India, to adopt initiatives aimed at diversifying fuel sources.

The PCO said the Philippines' response to the energy crisis was carried out "under a strategic whole-of-government framework anchored on the United Package for Livelihoods, Industry, Food, and Transport (UPLIFT) established under Executive Order No. 110."

President Ferdinand Marcos Jr. signed Executive Order No. 110 on March 24, 2026, declaring a state of national energy emergency.

This declaration allows the government to implement a combination of fiscal, social protection, and energy-related measures designed to mitigate the impact of the global oil shock.

The PCO emphasized that the ADB report did not mention the Philippines' UPLIFT program.

However, the PCO said UPLIFT enabled close coordination among agencies to stabilize supply, sustain economic activity, and protect vulnerable sectors.

"The framework brought together key departments, including energy, transportation, agriculture, finance, and social welfare, under a unified response mechanism," the PCO said.

Key initiatives include fuel subsidies for nearly 1 million public utility vehicle drivers and targeted assistance for farmers and fisherfolk.

Cash transfer programs have been expanded to reach over 4 million low-income households.

The government is also pursuing supply-side strategies, such as securing alternative oil sources and accelerating renewable energy projects to ensure long-term stability.

Monetary actions from the Bangko Sentral ng Pilipinas also helped manage inflation and stabilize the Philippine economy.

According to the PCO, the ADB noted that while risks remain due to continued global uncertainty, the Philippines’ policy mix has helped cushion the impact of recent shocks.

The ADB also highlighted that the country’s swift and wide-ranging response underscores its resilience amid ongoing external challenges.

-with Veronica Pulumbarit/Paraluman News